Jump Trading subsidiary files 264 million claim against FTX for unpaid SRM tokens
High-frequency trading giant Jump Trading’s subsidiary, Tai Mo Shan, has filed a claim against the now-defunct exchange FTX and Alameda for failing to deliver 800 million SRM tokens as per their contract. The claim seeks up to $264 million in damages.
Tai Mo Shan, one of the largest market makers like Robinhood, alleges that FTX owes them $264 million for the undelivered 800 million SRM tokens.
SRM is the native token of the decentralized exchange (DEX) Serum, which collapsed after FTX’s bankruptcy in November 2022.
Jump Trading previously made a significant investment in Serum in 2020 and provided market-making services.
According to Coingecko, the 800 million SRM tokens account for 73.3% of the existing approximately 1.09 billion SRM tokens, surpassing the current circulating supply of 370 million tokens.
Jump Trading estimates the claim amount of $264 million using an options model involving SRM market prices, option prices, implied volatility of SRM, and related interest rates.
FTX and Alameda argue that the contract was never fulfilled due to Alameda’s collapse before token delivery, hence there is no compensation issue.
They also question the validity of Tai Mo Shan’s estimated compensation amount, claiming it is based on a flawed options model that cannot be supported and lacks detailed documentation on how the amount was derived.
Furthermore, they raise concerns about the legality of Tai Mo Shan’s actions and the validity of the loan contract, suggesting potential involvement in illegal asset transfers.
Earlier last month, Kanav Kariya, CEO of Jump Trading’s crypto subsidiary, “Jump Crypto,” announced his departure, seemingly in response to an investigation by the CFTC.
Alameda, FTX, Serum, SRM, and Tai Mo Shan are all involved in the dispute.
For more information, read:
– Former FTX executives testify: employees engaged in private purchases of SRM tokens; had collaborated with Telegram to acquire a large number of TON tokens.
– Twitter account of former leading Solana DEX “Serum” allegedly sold! All previous posts deleted, including the promotion of meme coins.
